Nigerian Aviation Handling Company Plc

Unaudited Financial Position for the period ended 30th September, 2023

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 30 September, 2023

Contents

Page

Consolidated Statement of Comprehensive Income

1

Consolidated Statement of Financial Position

2

Statement of Changes in Equity

3-4

Nahco Plc free Float Analysis

5

Consolidated Statement of Cashflow

6

Notes to the Consolidated Financial Statements

7- 42

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 30 September, 2023

Consolidated and Separate Statement of Comprehensive Income

For the period ended 30th September, 2023.

`

Group

Company

Jan. - Sept.

Jan. - Sept.

Jul. - Sept.

Jul. - Sept.

Jan. - Sept.

Jan. - Sept.

Jul. - Sept.

Jul. - Sept.

Notes

2023

2022

2023

2022

2023

2022

2023

2022

N'000

N'000

N'000

N'000

N'000

N'000

N'000

N'000

Revenue

5

18,535,164

11,283,220

8,047,416

4,807,980

17,802,651

10,853,570

7,706,957

4,651,609

Operating costs

9a

(8,892,313)

(6,309,428)

(3,376,836)

(2,481,324)

(8,571,401)

(6,180,566)

(3,223,774)

(2,438,084)

Gross Profit

9,642,851

4,973,792

4,670,580

2,326,656

9,231,250

4,673,004

4,483,183

2,213,525

Other Income

6

277,518

241,299

74,029

97,595

113,887

186,727

71,896

74,196

Administrative Costs

9b

(3,411,359)

(2,427,668)

(1,298,025)

(921,099)

(3,247,977)

(2,228,245)

(1,256,257)

(837,490)

Expected Credit Reversal/(Losses)

-

-

-

-

-

-

-

Profit from operations

6,509,009

2,787,423

3,446,584

1,503,152

6,097,160

2,631,486

3,298,822

1,450,231

Finance Income

7

(4,123)

84,218

(8,932)

17,913

(4,123)

84,218

(8,932)

17,913

Finance costs

7

(140,890)

(141,601)

(46,963)

(46,963)

(132,870)

(132,870)

(44,290)

(44,290)

Profit/(Loss) before tax

6,363,996

2,730,040

3,390,689

1,474,102

5,960,168

2,582,834

3,245,601

1,423,854

Income tax expense

8(a)

(1,400,172)

(622,945)

(335,366)

(1,360,434)

(581,137)

(766,417)

(749,656)

(320,366)

Profit/(loss) after tax

4,963,825

2,107,095

2,624,272

1,138,736

4,599,733

2,001,697

2,495,944

1,103,488.00

Other comprehensive income

-

-

-

-

-

-

-

-

Total comprehensive income

4,963,825

2,107,095

2,624,272

1,138,736

4,599,733

2,001,697

2,495,944

1,103,488

Attributable to:

Profit/ (loss) attributable to owners

of the company

4,939,139

2,097,073

2,613,884

1,136,290

4,599,733

2,001,697

2,495,944

1,103,488

Non-controlling interest

9

24,686

10,022

10,388

2,446

-

-

-

-

4,963,825

2,107,095

2,624,272

1,138,736

4,599,733

2,001,697

2,495,944

1,103,488

Earnings per share

Basic earnings per share ( Kobo)

10

253

129

134

70

236

123

128

68

Diluted earnings per share ( Kobo)

10

253

129

134

70

236

123

128

68

1

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 30 September, 2023

Consolidated and Separate Statement of changes in Equity

For the period ended 30th September, 2023

Attributable to equity holders of the Group

Non-

Share

Share

Retained

controlling

Capital

Premium

Earnings

Total

Interest

Total Equity

N'000

N'000

N'000

N'000

N'000

N'000

As at 1 January 2023

974,531

1,752,336

6,368,770

9,095,637

(69,387)

9,026,250

Bonus Issue of 1 for 5 units of Shares

-

-

-

-

-

-

Restatement Due to IFRS 9 Adoption

-

-

-

-

-

-

Carrying Balance at 1 Jan 2023

974,531

1,752,336

6,368,770

9,095,637

(69,387)

9,026,250

Profit for the year

-

-

4,939,138

4,939,138

24,686

4,963,824

Other comprehensive income:

Adjustments passed within the year

-

-

-

-

-

-

Restated Balance Due to IFRS Adoption in Consolidation

-

-

-

Restated Balance from Arik Air Impairment Bal

-

-

-

-

-

-

Other comprehensive income

-

-

-

-

-

-

Total comprehensive income for the period

-

-

4,939,138

4,939,138

24,686

4,963,824

Transaction with owners recognised directly in equity

Dividend payable to owners

-

-

-

-

-

-

Dividend Paid

-

-

(2,338,876)

(2,338,876)

-

(2,338,876)

Total transactions with owners of the Company

-

-

(2,338,876)

(2,338,876)

-

(2,338,876)

As at 30th Sept. 2023

974,531

1,752,336

8,969,032

11,695,899

(44,701)

11,651,198

3

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 30 September, 2023

Attributable to equity holders of the Parent

Non-

Share

Share

Retained

controlling

Capital

Premium

Earnings

Total

Interest

Total Equity

N'000

N'000

N'000

N'000

N'000

N'000

As at 1 January 2023

974,531

1,752,336

6,131,193

8,858,060

-

8,858,060

Bonus Issue of 1 for 5 units of Shares

-

-

-

-

-

-

Restatement Due to IFRS 9 Adoption

Carrying Balance at 1 Jan 2023

974,531

1,752,336

6,131,193

8,858,060

-

8,858,060

Profit for the year

-

-

4,599,733

4,599,733

-

4,599,733

Other comprehensive income:

Defined benefit plan actuarial gains (losses)

-

-

-

-

-

-

Prior year deferred tax adjustment

-

-

-

-

-

-

Restated Balance from Arik Air Impairment Bal.

-

-

-

-

-

-

Other comprehensive income

-

-

-

-

-

-

Total comprehensive income for the period

-

-

4,599,733

4,599,733

-

4,599,733

Transaction with owners recognised directly in equity

Dividend payable to owners

-

-

-

-

-

-

Dividend Payment

-

-

(2,338,876)

(2,338,876)

-

(2,338,876)

Total transactions with owners of the Company

-

-

(2,338,876)

(2,338,876)

-

(2,338,876)

As at 30th Sept. 2023

974,531

1,752,336

8,392,050

11,118,917

-

11,118,917

4

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 30 September, 2023

Consolidated and Separate Statement of Cash Flows

For the year ended 30th September, 2023

Group

Sept. 2023

Dec.

Notes

2022

N'000

N'000

Cash Flows from Operating Activities

Profit before Tax

6,363,996

3,842,410

Adjustments to reconcile profit before tax to ne

t cash fl

ows:

Depreciation: PPE

11

695,531

913,422

Depreciation: Investment property

13

1,877

10,319

Amortisation of intangible asset

12

1,446

6,833

Cost of assets transferred

-

-

Depreciation of the transferred asset

-

-

Depreciation of right of use of assets

55,187

51,974

Assets written off

-

25,007

Depreciation on Assets written off

(2,779)

Inventory written off

124,497

43,320

Gain/Loss on Average Cost Variance

6

(33)

(37,050)

Expected Credit (reversals)/ losses

9c

-

237,391

Unrealised exchange gain

6

78,457

-

Deferred rent released to profit or loss

29

(152,205)

(208,633)

Finance cost

7

140,890

177,391

Finance income

7

4,123

(79,721)

Provisions no longer required

6

-

(41,663)

949,769

1,095,811

Company

Sept. 2023Dec. 2022

N'000N'000

5,960,168 3,618,614

681,282

891,515

1,877

10,319

1,446

6,746

-

-

-

-

51,850

47,524

-

25,007

(2,779)

124,497

43,321

(33)

(37,050)

-

238,546

(78,913)

-

(152,205)

(208,633)

132,870

167,716

4,123

(79,721)

  • (41,663)
    766,793 1,060,848

7,313,765

4,938,221

6,726,960

4,679,462

Working Capital adjustments:

(Increase)/Decrease in inventories

(332,138)

(204,277)

(332,138)

(204,277)

(Increase)/Decrease in trade and other receivables

(5,682,831)

(2,597,696)

(5,434,055)

(2,458,687)

(Increase)/Decrease in intercompany receivables

-

-

(22,313)

(18,974)

(Increase)/Decrease in prepayments

677,974

(99,021)

778,970

(38,183)

(Decrease)/increase in trade and other payables

28

(726,059)

303,962

(853,550)

5,130

(Decrease)/increase in intercompany payable

-

-

-

-

(6,063,054)

(2,597,032)

(5,863,087)

(2,714,991)

Cash generated from operations

1,250,711

2,341,189

863,874

1,964,471

Taxation paid

8(b)

(1,344,312)

(603,907)

(1,345,046)

(562,060)

Net cash flows from operating activities

(93,601)

1,737,282

(481,173)

1,402,411

Cash Flows from Investing activities

Purchase of property, plant and equipment

11

(547,611)

(1,363,760)

(542,834)

(1,356,975)

Right of use of assets

4,106

-

(4,106)

-

Purchase of Intangible Assets

12

-

-

-

-

Acquisition of Investment properties

13

-

(1,306)

-

(1,306)

Investment in debt Instrument

-

-

-

-

Liquidation of debt instrument

368,628

368,628

368,628

368,628

Proceeds from disposal of property, plant and equipment

-

83,419

-

83,271

Rent received

29

230,319

213,727

93,349

192,183

Outflow from Bond repayment fund

16

-

-

-

-

Grant Received

-

-

-

-

Inflow to Bond repayment fund

16

-

-

-

-

Loan to subsidiary

-

-

-

-

Loan repaid by subsidiary

15

-

-

-

-

Interest received

7

(4,123)

79,721

(4,123)

79,721

Net cash flows (used in)/ from investing activities

51,319

(619,571)

(89,086)

(634,478)

Cash Flows from Financing activities

Repayment of bond

27

-

-

-

-

Unclaimed dividend

-

-

-

-

Finance cost

7

(140,890)

(200,805)

(132,870)

(189,030)

Dividends paid

25

(2,338,876)

(665,930)

(2,338,876)

(665,930)

Payment of interest on lease

28b

-

-

-

-

Payment of Lease Liability

28b

-

-

-

-

Net cash flows used in financing activities

(2,479,766)

(866,735)

(2,471,746)

(854,960)

Net (decrease)/increase in cash and cash equivalents

(316,241)

251,223

(301,453)

(87,027)

Cash at bank and in hand, beginning of year

2,811,998

2,560,775

2,263,090

2,350,117

Cash at bank and in hand, end of Period

22

2,495,757

2,811,998

1,961,637

2,263,090

Cash & cash equivalents at 30th Sept. 2023

22

2,495,757

2,811,998

1,961,637

2,263,090

5

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 30 September, 2023

NAHCO PLC free float status

Shareholding Structure/Free Float Status

Sept. 30th, 2023

Sept. 30th, 2022

Description

Percentage (In

relation to Issued

Percentage (In relation

Units

Share Capital)

Units

to Issued Share Capital)

Issued Share Capital

1,949,062,500

100.000%

1,624,218,750

100.000%

Details of Substantial Shareholdings (5% and above)

[Name(s) of Shareholders]

Godsmart Nigeria Ltd

525,278,312

26.950%

437,731,927

26.950%

White Cowry Industries Limited

178,643,862

9.165%

148,869,885

9.165%

Awhua Resources Limited

138,945,487

7.129%

115,787,906

7.129%

Total Substantial Shareholdings

842,867,662

43.244%

702,389,718

43.244%

Details of Directors Shareholdings (direct and indirect), excluding directors' holding substantial interests

[Name(s) of Directors]

Dr. Seinde Fadeni Oladapo (Indirect)

-

-

-

-

Engr. Mohammed Gambo Umar, mni, FNSE (Direct)

-

-

-

-

Mrs Olatokunbo Adenike Fagbemi (Direct)

-

0%

-

0.000%

Sir Sunday Nnamdi Nwosu (Direct)

1,240

0.000%

135,715

0.008%

Mr. Akinwumi Godson Fanimokun (Direct)

7,031,932

0.361%

5,726,610

0.353%

Mr. Salman Taofeeq Oluwatoyin (Direct)

-

-

-

-

Engr. Solagbade Olukayode Alabi (Indirect)

-

-

-

-

Mr. Tajudeen Moyosola Shobayo (Direct)

18,505,280

0.949%

10,018,250

0.617%

Mr. Olumuyiwa Augustus Olumekun (Direct)

-

-

-

-

Mrs. Abimbola Adunola Adebakin (Direct)

-

-

-

-

PROF. ENYINNA UGWUCHI OKPARA

39,600

0.008%

33,000

-

Prince Saheed Lasisi (Direct)

6,256,985

0.321%

4,930,905

0.304%

Total Directors' Shareholdings

31,835,037

1.633%

20,844,480

1.283%

Details of Other Influential shareholdings, if any (E.g. Government, Promoters)

[Name(s) of Entities/ Government]

-

-

-

-

Total of Other Influential Shareholdings

-

-

-

-

Free Float in Unit and Percentage

1,074,359,801

55.122%

900,984,552

55.472%

Free Float in Value

N25,623,481,277.70

N5,090,562,718.80

Declaration:

  1. NAHCO Plc with a free float percentage of 55.122% as at 30 Sept. 2023, is compliant with The Exchange's free float requirements for companies listed on the Main Board.
  1. NAHCO Plc with a free float percentage of 55.4729% as at 30 Sept 2022, is compliant with The Exchange's free float requirements for companies listed on the Main Board.

Note:

  • Share Price as at Sept. 30th, 2023 N23.85
  • Share Price as at Sept. 30th, 2022 N5.50

6

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 30 September, 2023

NIGERIAN AVIATION HANDLING COMPANY PLC

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER, 2023

1. Reporting entity

Nigerian Aviation Handling Company PLC ("nahco aviance" or "the Company") is a company domiciled in Nigeria with its registered office at Murtala Muhammed International Airport, Ikeja, Lagos. The consolidated financial statements of the Company for the year ended 30 September, 2023 comprise the Company and its subsidiaries (together referred to as the "Group" and individually as "Group entities"). The group is primarily involved in provision of services including aircraft handling, cargo handling, passenger handling, passenger profiling, crew transportation, energy and power distribution and leasing of ground handling equipment.

2. Basis of preparation

  1. Statement of compliance
    The financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

The financial statements were authorized for issue by the Directors on 30 Oct. 2023.

    1. Functional and presentation currency
      These financial statements are presented in the Nigerian Naira, which is the Group's functional currency. Except as indicated, financial information presented in Naira has been rounded to the nearest thousands.
  2. Basis of measurement

  3. These financial statements are prepared on the historical cost basis.
  4. Use of estimates and judgments

  5. The preparation of the consolidated and separate financial statements is in conformity with the IFRSs requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
    The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

2. Basis of preparation - Continued

  1. Use of estimates and judgments - Continued
    Judgments
    In the process of applying the Group's accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognised in the financial statements:
    Determining the timing of satisfaction of Ground and Cargo Handling Services
    Revenue from contract with customers is to be recognized over time because the customer simultaneously receives and consumes the benefits provided by the Company. The fact that another entity would not need to re- perform the service that the Company has provided to date demonstrates that the customer simultaneously receives and consumes the benefits of the Company's performance as it performs.

7

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 30 September, 2023

The Company has determined that the input method is the best method in measuring progress of Ground and Cargo Handling Services contracts because it can demonstrate that the invoiced amount corresponds directly with the value to the customer of the Company's performance completed to date.

Operating lease commitments - Group as lessor

The group has entered into commercial property leases on its investment property portfolio. The group has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life of the commercial property and the present value of the minimum lease payments not amounting to substantially all of the fair value of the commercial property, that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases.

Going concern

The group's management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Furthermore, the Management is not aware of any material uncertainties that may cast significant doubt upon the Group's ability to continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

  1. Use of estimates and judgments - Continued
    Discount rate used to determine the incremental borrowing rate
    The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) as it relates to each specific subsidiary to measure lease liabilities. The IBR is the rate of interest that each entity in the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.
    The Group estimates the IBR using the following steps:
    Step 1: Reference rate: This is generally a government bond reflecting risk-free rate. Repayment profile was considered when aligning the term of the lease with the term for the source of the reference rate.
    Step 2: Financing spread adjustment: Use credit spreads from debt with the appropriate term by considering Company's stand-alone credit rating or similar Company credit rating.
    Step 3: Lease specific adjustment: Use of market yield for the leased assets, as an additional data point and to check the overall IBRs calculated.
    Re-assessment of useful lives and residual values
    The Group carries its PPE at cost less accumulated depreciation and impairment in the consolidated and separate statements of financial position. The annual review of the useful lives and residual value of PPE result in the use of significant management judgements.

8

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Nigerian Aviation Handling Company plc published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 18:27:51 UTC.